Objectives
Chapter 10: Resource Mobilisation and Funding Arrangements
10.2 Funding arrangements
Arrangements for the funding of activities
The funding of HIV/AIDS in Ghana has received immense support from both multilateral and bilateral sources. But while the GARFUND and some of the support for the national response have been channelled through the Commission, some development partners and civil society organisations have tended to allocate funds directly to implementers without recourse to GAC. This situation has made it difficult to track and accurately estimate resources committed to the national HIV/AIDS response. The multiplicity of funding sources and channels also has implications for financial reporting. The major resource providers have complex reporting requirements which put serious strain on GAC and other recipients of financial support as they have to submit several different sets of financial reports concurrently.
One of the outcomes of the direct funding to implementing agencies without involvement of the GAC led to the implementation of programmes that were outside the National Framework. To focus the resource allocation process and the targeting of interventions to priority areas under NSF II, it is important to ensure that the funding of areas all activities are within the Framework.
This NSF II recognises the need for a holistic and flexible resource management mechanism that allows for pooling of resources earmarked for direct funding of HIV/AIDS activities under the national response. Under the pooled funding arrangement, contributions will be pledged annually by development partners and the Government of Ghana. The contributions and the commitments of resources will be based on consultations on annual work plans and budgets, to be facilitated by GAC, on priority programmes and budgetary requirements within the National Strategic Framework. This will help to improve the tracking and estimation of HIV/AIDS resources from all sources.
As part of the process of pooled funding arrangements, the reporting requirements of the various providers of resource will be harmonised.
In addition to the pooled resources, other channels for funding such as the earmarked approach, direct funding and in-kind support will exist. Under the channel for earmarked funds, development partners interested in specific priorities in the national response will
provide resources for the specific interventions identified. With the direct funding arrangements and in-kind support, resource providers can fund selected activities under the national response but outside the pooled arrangement. The only requirement is that funding agencies will be requested to submit reports to GAC so that the Commission can facilitate the tracking of all resources committed to the national response.
Additionally, funds received through the Global fund for TB, malaria and HIV/AIDS will be channelled into the common basket.
Funding of the Ghana AIDS Commission
At the national level, GAC prepares and submits annual budgets in line with the Medium Term Expenditure Framework (MTEF). Given the competing interests for resources, the Commission may not always receive its full requirement of funds. In view of the high priority of HIV/AIDS in the country and the urgency of the national response, there is the need to guarantee resource flow to the Commission. Consequently, the budgeting process of GAC will be reviewed during the period of NSF II. The new realities will also require substantial funding from the Government of Ghana.
Management and Disbursement of funds
With the decentralization of the implementation of the national response, the allocation and disbursement processes will also be decentralised to strengthen community response to the epidemic using the existing district and sub-district structures. The challenge, however, is improving the low capacity to plan, implement, monitor, mobilize and disburse funds. In NSF II these will be the need to improve the processes and procedures for the disbursement of funds and the capacity of implementers in order to ensure the success of the decentralized response.
The resource requirement for scaling-up the national response has to be complemented by strong financial management and monitoring systems at both the Secretariat and district levels. Monitoring will focus on effective and efficient use of resources (based on outputs) rather than on inputs. This will necessitate cost-benefit analysis to evaluate the extent to which results being achieved are consistent with resources used. Among others, it will require the development of national benchmarks and performance measures to guide resource use by both resource providers and implementers. To achieve these, it will be necessary to integrate the financial systems of the Secretariat with those of the districts, and improve the capacity of the latter to facilitate accurate and timely financial reporting. This calls for training in financial management, monitoring and evaluation of resource flows.
The success of the national response is dependent on the existence of capacity to undertake critical tasks and activities. This includes addressing institutional capacity in
communities also constitute ‘social capital’ that can be harnessed to strengthen the monitoring of effective and efficient resource use by implementers. To achieve this, the capacity of civil society organizations will be developed their representation on the RAC and DAC will strengthen the monitoring roles that these units are expected to play (Appendix 1).
Strategic Results
1. Mobilized adequate resources to the requirements of NSF II;
2. Streamlined budgeting process;
3. Established effective targeting and resource allocation process;
4. Strengthened financial management and monitoring systems; and
5. Strengthened institutional and human capacity for resource mobilisation and management.
Challenges
• Raising sufficient funds;
• Gaining commitment from multiple funding sources;
• Coordinating funding channels and sources;
• Improving the budgeting process;
• Improving targeting of available resources;
• Strengthening financial management and monitoring;
• Reporting promptly on financial activities by collaborating agencies; and
• Building capacity for mobilizing and managing resources.
Strategies
1. Ensure an increase in the resource commitment of the Government of Ghana to HIV/AIDS activities under NSF II through:
a. Improved direct funding from the consolidated fund through the MTEF budget;
b. Improved allocation of funds from MDA to HIV/AIDS activities in their annual MTEF budgets;
c. Developed criteria and formula for allocating resources to HIV/AIDS from the district common fund;
d. Ensured disbursement of the minimum 1% of the district assembly common fund allocated to HIV/AIDS activities.
2. Ensure that all resources committed for HIV/AIDS activities by the government, MDA and District Assemblies are disbursed in full and released on time;
3. Ensure the establishment of a joint country appraisal of Development Partners to be facilitated by GAC to undertake and develop one project document for funding HIV/AIDS activities under a pooled funding arrangement;
4. Institute regular HIV/AIDS round table meetings with resource providers and key stakeholders to provide update and review programmes, resource availability, funding gaps, resource requirements and disbursements;
5. Identify and streamline the roles and contributions of NGO involved in resource mobilisation and funding through dialogue and consultations to ensure that their activities are consistent with, and integrated into, the national response;
6. Identify and acknowledge the roles and contributions of the private sector and corporate organisations in resource mobilisation and funding to the national response;
7. Create a unit/desk within GAC to be responsible for exploring new sources of funding (both locally and externally) for the national response;
8. Establish a funding arrangement that is flexible and attractive to development partners and other resource providers through:
a. Pooled funds (government and development partners) based on agreed annual work plan and corresponding budget;
b. Earmarked funds (development partners);
c. Developed strategies for direct funding of HIV/AIDS activities by development partners, NGO, FBO, CBO, private sector/corporate entities;
d. Identified and developed strategies for other forms of funding arrangements such technical support and in-kind contributions.
9. Develop guidelines in consultation with all implementers and organisations involved in HIV/AIDS activities detailing priority intervention areas at agreed periods;
10. Develop strategies for information sharing on national HIV/AIDS priorities among stakeholders to help improve the targeting of intervention;
11. Decentralise the allocation and disbursement of funds for HIV/AIDS activities to the district levels;
12. Enhance the capacity of GAC, implementers and other stakeholders, including INGO, on financial management, monitoring and evaluation, tracking and other financial issues within the context of HIV/AIDS priorities areas;
13. Strengthen the financial and fiduciary arrangements at the GAC and the district levels to improve resource tracking, monitoring and accountability;
14. Harmonise financial reporting requirements of Development Partners contributing to the pooled funding and strengthen mechanisms for reporting by GAC and other implementers;
15. Establish a mechanism for tracking resource flow outside the pooled funding arrangement and ensure that the disbursements of earmarked and direct funds are reported to GAC;
16. Develop key indicators for measuring and evaluating use of resources to assess results achieved vis-à-vis resources used;
17. Improve the auditing of activities of implementers to ensure that resources are effectively and efficiently utilised;
Lead Agency
Ghana AIDS Commission
Key Actors
Ministry of Finance and Economic Planning, Ministry of Health, Municipal/District Assemblies and Ministry of Local Government & Rural Development, Development Partners, NGO, Private sector/corporate bodies, FBO, CSO, and CBO